Insurance company established and owned by a parent firm in order to insure its loss exposures while reducing premium costs, providing easier access to a reinsurer, and perhaps easing tax burdens. See also Association captive.

a domestic insurer that transacts the business of insurance or reinsurance only on risks, hazards and liabilities of its parent, subsidiary companies of its parent, affiliate companies or the members of an insurance association

a limited purpose, wholly-owned insurance subsidiary of an organization not in the insurance business, which has as its primary function the insuring of some of the exposures and risks of its parent or its parent's affiliates

An insurance company with the purpose of providing insurance to its parent company. Societies can solely own a life assurance company but cannot own more than 15% of a general insurer unless it is in connection with mortgage indemnity guarantees.

A legally recognized insurance company organized and owned by a corporation or firm whose purpose is to use the captive to write its own insurance at rates lower than those of other insurers. Usually it is a non-admitted insurer that has the right, under special circumstances, to reinsure with an admitted insurer.

An insurance company set up for the purpose of providing insurance services for its parent organisation. In 1994 the Treasury permitted building societies to set up captives to write their own MIG business. Groups of societies can set up a captive between them for this purpose. Though societies can wholly own a life assurance company, they cannot own more than 15% of a general insurer, except in connection with MIG business.